Comistar to Launch Security Token Issuance Platform for Start-Ups

Comistar to Launch Security Token Issuance Platform for Start-Ups

October 11, 2018 Off By Maheen Hernandez

Comistar stated, “Our goal is to be the major security token issuance platform in the whole of the European Union.

Startups can legally offer security tokens.  A security token platform that will enable startups to provide security tokens is soon to come from Comistar Estonia.  Comistar Estonia is a subsidiary of Comistar International.

Security tokens are special token variants that require complete regulatory compliance to the respective financial authorities of the nation or jurisdiction.

Comistar will be working with several companies across Europe.  However, they will be using the jurisdictions of Malta, Switzerland, Liechtenstein, Luxembourg, and Netherland to decide on the compliance factor for the structure of their offering.

While standard types of ICOs are trending out of the mainstream, projects are looking at new ways in order to ensure they are working in a legally compliant manner to issue security tokens.  Of note, Leaseum Partners a New York-based security token works in regulatory compliance with the SEC.

The goal of Comistar is to issue tokens for company equities; however, they are also focused on issuing security tokens for real estate and fine arts.

It should be noted that the intrinsic value of the security token will be dependent on the value of the asset type that backs the token.  The role of Comistar in the process of helping with security token issuance is to help the startup identify the most suitable jurisdiction for their token type.

While it is true that there are very few token ecosystems to help trade these tokens, there is a widespread belief that trading this kind of asset type will be the future of the cryptocurrency space.  There are several platforms that are meant for the creation of tokens backed by asset types; however, such assets are not viewed with much trust. Establishing the trust factor is the hardest, and this is where regulation comes in to play.

The first round of ICOs were unregulated; however, creating token types that are completely in compliance with regulation is the next best step forward in the industry.  While ICOs were not securities, these tokens are securities and are legally valid for trial in the court of law. Ethereum and XRP from Ripple were earlier subject to acquisitions for selling unregulated tokens.

In a market where competition is building, Comistar is venturing to help businesses tokenize their business model without any kind of worry about security laws.  Comistar will also be offering their clients with marketing and advisory services.  The beta version of the site is exclusively for the startups looking to tokenize asset types.

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